Research On M Company Procurement Process

With the rapid development of China's economy,the market competition is unprecedented,and major companies are trying to establish their own core competitive advantages,improve the efficiency of business operations,and reduce operating costs.The current market competition is the competition of globalization.The competition has been from the previous single-player competition to the current supply chain competition.Purchasing is an important link in the supply chain.The traditional procurement methods and procurement processes cannot meet today's enterprises.For development needs,changes must be made to existing procurement processes to improve procurement management efficiency and reduce procurement costs.This paper mainly takes the state-owned enterprise M company as the research object.Based on the analysis of M company's existing procurement process and supplier management process,the ASME method and IDEFO model are used to diagnose the M company procurement process and supplier management process.In terms of the procurement process,there are problems such as the cumbersome procurement process involving the cumbersome department,the difficulty of supplier management,the difficulty in controlling the quality of purchased materials,and the complexity of procurement approval procedures.In terms of supplier management,the degree of informatization is not high,and supplier evaluation is often subjective and lacks scientific supplier performance appraisal system.In view of the above problems of M company,the two business processes of M company's procurement process and supplier management process are improved.In the improvement of procurement process,the original serial mode was changed,the ERP system was used in parallel,the information feedback was strengthened,the procurement cycle was shortened,and the response to market demand was quickly responded.In addition,the approval process was reduced and the efficiency of examination and approval was accelerated.In the aspect of supplier management process improvement,a dedicated supplier review team was established to select and evaluate the supplier's indicator system and improve the scientific and rationality of supplier selection and evaluation.The use of ERP system to speed up information transmission and feedback,change the serial mode,greatly shorten the waiting time of selecting suppliers,increase the supplier inspection link,and further strengthen the early supervision and control of suppliers.Through the above measures,riot only the original procurement process of M company is improved and optimized,but also the supplier management process is further optimized.In terms of improvement effect,the procurement process cost is reduced,many non-value-added links are reduced,procurement efficiency is improved,M company's response^speed to market demand is accelerated,customer satisfaction is improved,and M company and supplier have established a good relationship.The partnership,and M company has established a supplier incentive mechanism,increased the incentives for suppliers,the purpose is to achieve a win-win situation for both parties.In order to ensure the smooth implementation of the above measures,the implementation guarantee of M company procurement business process improvement is proposed mainly from the aspects of management,information system,organizational structure and incentive mechanism.Only with the support of management,business process improvement measures can be promoted,ERP system plays an important role in process improvement,so M company must use information system.In addition,M company must also improve the company's organizational structure,to improve its own organizational structure according to the improved procurement process,to establish a suitable and perfect organizational structure according to their own needs.The improved procurement process must also be supported by employees.An effective employee incentive mechanism should be established to allow employees to do their best to adapt to the new process and enable the improved procurement process to be effectively implemented.